Page 14 - Economic Outlook Romania 2019

Domestic macro backdrop: summing up

• GDP: slower cruising speed. 2017 great, 2018 at potential, 2019 below

• Long term potential growth suffering from lack of structural reforms

• Consumer confidence softening despite (still) strong wage growth

• Retails sales growth switching into a lower gear

• Manufacturing outlook lower as well on weaker external demand

• Residential market in correction mode

• EU funds needed to boost investment

• Services are seeing less demand, though cyclical ones still in good shape

• 2.0-3.0% GDP growth for the next couple of years

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